Apple Loses Smartphone Sales Crown in China, Drops to Third in 2024

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Apple has lost its position as China’s top smartphone seller in 2024, with local competitors Vivo and Huawei surpassing the tech giant. According to data from research firm Canalys, Apple’s annual smartphone shipments in China declined by 17%, marking its largest drop since 2016.

Vivo, the budget smartphone maker, secured 17% of the market share, while Huawei, with its premium offerings, held 16%, and Apple dropped to third with 15%. This marks a significant shift in market dynamics, as domestic manufacturers gain strength in one of Apple’s largest global markets.

Apple’s decline is attributed to various factors, including the lack of artificial intelligence capabilities in its latest iPhones, which has hurt its competitiveness in China, where services like ChatGPT are unavailable. Canalys analyst Toby Zhu commented that Apple’s premium market position faces multiple challenges, such as Huawei’s resurgence in the flagship segment, the rise of domestic foldable phones in high-price segments, and Android brands like Xiaomi and Vivo building consumer loyalty through technological innovations.

Despite previously experiencing four years of growth following U.S. sanctions on Huawei in 2019, which restricted the company’s access to American technology, Apple now faces a strong challenge from Huawei. The Chinese company has seen a resurgence, with a 24% rise in shipments during the fourth quarter of 2024 after launching new phones with locally-made chipsets.

To combat the decline, Apple resorted to offering discounts. In early January, Apple launched a four-day promotion in China, offering price cuts of up to 500 yuan ($68.50) on iPhone 16 models through official channels. Major Chinese e-commerce platforms followed suit, with Alibaba’s Tmall marketplace offering discounts up to 1,000 yuan ($137) on the latest iPhone 16 series devices.

Among the top five smartphone vendors, Xiaomi posted the strongest growth, with a 29% increase in shipments in the fourth quarter, while Oppo and Vivo saw increases of 18% and 14%, respectively. Overall, smartphone shipments in China rose by 4% year-on-year to 285 million units in 2024.

 

Telcos Advanced Info and Thaicom Urge Investors to Reject Acquisition Offers Amid Parent Merger

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The boards of Thailand-based mobile carriers Advanced Info Service (AIS) and Thaicom have urged investors to reject acquisition offers under the proposed merger of their respective controlling entities. This comes as part of an ongoing restructuring process by Gulf Energy Development, the largest shareholder of Thaicom, and Intouch Holdings, the controlling entity of Advanced Info Service.

In July 2024, Gulf Energy and Intouch announced plans to merge, aiming to form a new company valued at 1.037 trillion baht ($30 billion). This move is designed to enhance operations and optimize investments between the two companies. The merger has already been approved by shareholders of Gulf, led by Thai billionaire Sarath Ratanavadi, who is the country’s fifth-richest individual, with a net worth of $15.1 billion according to Forbes.

A tender offer was made by Gulf, Intouch, and Singtel to acquire Advanced Info Service, initially valuing the company at 216.30 baht per share, later lowered to 211.43 baht. However, Advanced Info’s financial adviser found the revised price to be below its estimated valuation range of 229.55 to 285.70 baht per share, leading the company to ask investors to reject the offer. In response, Gulf Energy confirmed the tender offer price is final and they do not plan to revise it.

Similarly, Gulf, Intouch, and Sarath made a similar tender offer to purchase 58.9% of Thaicom at 11 baht per share. Thaicom has also recommended that investors vote against the deal, pointing to its rising stock price since the merger announcement. Thaicom’s shares ended flat at 12.3 baht on Thursday.

The rejection of the offers by both companies’ boards has not disrupted the merger process. Varorith Chirachon, head of investment research at SCB Asset Management, stated that the market had anticipated this move and noted that the stock prices for both companies are higher than the offered prices, meaning the rejection of the tender offers does not pose a significant risk to the merger.

 

Infosys Raises Annual Revenue Forecast on US Demand Revival

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Infosys, India’s second-largest software services exporter, has raised its annual revenue forecast for the third time this financial year, driven by a revival in U.S. demand, particularly from banking and retail clients. The company now expects its annual revenue to rise by 4.5% to 5%, an increase from its previous forecast of 3.75% to 4.5%.

This upbeat outlook mirrors the sentiments of other Indian IT giants, including Tata Consultancy Services (TCS) and HCLTech, which have also reported early signs of a recovery in discretionary spending. Infosys’ CEO, Salil Parekh, noted an improvement in the U.S. retail and consumer product industries, as challenges related to discretionary spending ease.

In the third quarter, Infosys posted a 7.6% revenue growth to 417.64 billion rupees ($4.83 billion), exceeding analyst estimates of 412.78 billion rupees. The growth was mainly driven by an uptick in revenue from North American clients, which constitute 60% of the company’s total revenue. This marks a significant recovery, as North American revenue had declined for five consecutive quarters.

Infosys also reported an 11.4% increase in profit for the quarter, reaching 68.06 billion rupees, surpassing analysts’ expectations. The company highlighted that all eight business segments saw higher growth, with the financial services division growing 6.1%. The company secured large orders worth $2.5 billion, reflecting its focus on significant deals and strategic engagements.

Gaurav Parab, an analyst at NelsonHall, noted the positive results, particularly the company’s focus on large deals and the promising developments in Agentic AI, a technology enabling AI-powered agents and bots.